§ Mr. Clemitsonasked the Secretary of State for Prices and Consumer Protection, in making forecasts of likely future movements in the retail price index, what relative weightings he gives, respectively, to rises in income, movements in commodity prices, changes in the exchange rate of the pound sterling, changes in the minimum lending rate and any other factors.
§ Mr. Denzil DaviesI have been asked to reply.
Forecasts of the retail price index take account of the factors mentioned, as well as many others, but these are not all mutually exclusive nor are they independent of each other. Precise figures therefore depend on the circumstances, but of the factors mentioned changes in wages and salaries would generally have a much larger effect on prices than changes in commodity prices, exchange rates or interest rates.